and tracts of cheap land . Texas already has a high proportion of renewables in its energy mix but has plenty of scope for more — if it can draw the investment .
That is where crypto miners come in , as their energy demands may make it viable for power companies to build renewable capacity and connect it to the grid . The concept is supported by investors who have poured hundreds of millions of dollars into infrastructure and battery storage in western Texas , where most electricity is generated from renewables .
Lancium , a power management firm for data centers , has been one of the beneficiaries of investor interest . The company raised $ 150 million from power companies to build bitcoin mines that will run on renewable energy across multiple sites in Texas .
“ By increasing demand , we are able to improve the economics for renewable developers ,” says Shaun Connell , executive vice president of power at Lancium .
There is one catch , though , for miners setting up in the Lone Star State . They must be prepared to shut down operations in times of peak power demand , such as during extreme weather events , to ease strain on the grid . With miners able to turn operations on and off instantaneously , Texas ’ s grid operator Electric Reliability Council of Texas ( ERCOT ) sees crypto operators adding stability to the grid in times of excess demand and supply .
“ We can use cryptocurrency to soak up the excess generation and really provide a home for more wind and more solar to come to our state ,” Brad Jones , the former interim chief executive of ERCOT , said in March 2022 before retiring from the role in October .
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